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Chapter 39 - Case Problem

Disregarding the Corporate Entity. Steven and Janis Gimbert leased a warehouse to a manufacturing business owned by Manzar Zuberi. Zuberi signed the lease as the purported representative of “ATM Manufacturing, Inc.,” which was a nonexistent corporation. Zuberi was actually the president of two existing corporations, ATM Enterprises, Inc., and Ameri-Pak International. Under the Ameri-Pak name, Zuberi manufactured a household cleaning product in the Gimberts’ warehouse. The hydrochloric acid used in the operations severely damaged the premises, and the Gimberts filed a suit in a Georgia state court against Zuberi personally to collect for the damage. On what basis might Zuberi be held personally liable? Discuss fully. [Zuberi v. Gimbert, 230 Ga.App. 471, 496 S.E.2d 741 (1998)]